Can I get car finance with no proof of income?

Daniel Timblick, Senior Credit Risk Analyst, Friday, 23 February 2024
Updated: Friday, 23 February 2024

When you’re looking for car finance, one of the things you’ll be asked about is your monthly income.

If you make an application with us and are accepted, an expert from our team will be in touch to guide you through the process. This includes submitting proof of identity and proof of income. But you might be wondering whether you can still get car finance without proof of income.

In this guide, we explore whether you can get car finance with no proof of income, what proof of income means, and what options may be available if you can’t prove your income.

When you’re looking for car finance, one of the things you’ll be asked about is your monthly income.

If you make an application with us and are accepted, an expert from our team will be in touch to guide you through the process. This includes submitting proof of identity and proof of income. But you might be wondering whether you can still get car finance without proof of income.

In this guide, we explore whether you can get car finance with no proof of income, what proof of income means, and what options may be available if you can’t prove your income.

At Moneybarn, we will run an affordability check to ensure the finance we offer is suitable for you. One of the ways we do this is by verifying that your monthly income is no less than £1,000 after tax.

We always try to verify your income automatically, but in some cases, we may need more information to prove your income. If this happens, one of our experts will be in touch to help guide you through our application process.

At Moneybarn, we will run an affordability check to ensure the finance we offer is suitable for you. One of the ways we do this is by verifying that your monthly income is no less than £1,000 after tax.

We always try to verify your income automatically, but in some cases, we may need more information to prove your income. If this happens, one of our experts will be in touch to help guide you through our application process.

Why do car finance providers ask for proof of income?

Car finance companies must ensure you can make your monthly repayments and that any agreements you enter will not cause financial difficulty. To do this, they perform a credit check to understand your eligibility.

You might have heard of companies claiming to offer car finance with no credit check, but this is a misleading claim and you should be cautious of anyone offering it.

This is explained by the Financial Conduct Authority (FCA) who regulate financial services in the UK. They explain that lenders “must undertake a reasonable assessment of the creditworthiness of a customer” before they can be offered finance.

By requesting proof of income and reviewing your credit history, we can make sure any finance we offer is tailored to your circumstances.

Discover more about how we operate.

What documents can be submitted as proof of income?

Every lender is different, and the documents they ask for vary. Most lenders ask for payslips, bank statements, or tax returns to understand your affordability.

When you apply for car finance with us, we’ll ask for 2 consecutive months of payslips or pension payments. We may also accept tax returns and benefits statements. This helps us make sure car finance is right for your circumstances.

As part of our checks, we’ll look at your credit file, income, and how much credit you currently have. For more information, check out our guide that explains the checks made by car finance companies.

What other documents do you need to be accepted for car finance?

As well as proof of income, you’ll need to provide us with:

  • Proof of identity: usually a full UK driving licence or passport.
  • Address history: if you are registered on the electoral roll, you won’t usually be asked for documents to confirm this. However, if you aren’t, the lender may ask for documents confirming at least 3 years of UK address history.

Can you get car finance with no proof of income?

Yes, it may be possible to get car finance without providing payslips. Some people naturally won’t have payslips that show their income, for example if they’re self-employed, retired, or in receipt of benefits. There may be other ways that a lender can prove your income, such as by using Open Banking.

If a lender can’t verify your income through Open Banking, they may ask you to provide documents proving your income.

If you don’t receive income from a job or pension, there are other sources of income we accept. These include:

  • Government benefits such as DLA and CA. Check out our guide to getting car finance on benefits. It lists all the benefits that we accept and explains the process of getting approved if you receive benefits.
  • Self-employed income. We are proud to accept applications from those who are freelancers, contractors, sole traders, and other people looking for car finance when self-employed.

This list is not exhaustive. Please read our page that outlines the full list of sources of income we accept for further information.

What are my options if I can’t provide proof of income?

You might be unemployed and looking for car finance with no proof of income. If you’ve recently changed jobs, acceptable proof of income if applying with Moneybarn is the most recent payslip from your new employer and 1 month payslip from your previous employer.

We also accept people who are self-employed looking for car finance or those who claim benefits looking for car finance.

Once you’ve got a quote, if you’re approved, a friendly expert from our team will be in touch to guide you through the process.

There are some things you can do to increase your chances of getting approved for car finance:

  • Making a joint application: a joint application is made by two people at the same address, like a partner or family member, and means that two incomes are considered. See our guide on joint car finance for more information.
  • Using a guarantor: some lenders let you use a guarantor for car finance, who will be responsible for making the payments if you cannot. Guarantors are typically friends or family members.
  • Using a specialist lender: some specialist lenders including bad credit car finance lenders can help those rejected elsewhere.
  • Improving your credit score: before applying, check your credit score and see if there’s anything you can do that might improve it. Doing things like registering for the electoral roll (if you haven’t already) can improve your credit score and your chances of being approved.

Get a new car on finance with Moneybarn

If you’re looking to buy your next car on finance, we’d love to help. Try our car finance calculator to see what your agreement could look like, based on how much you want to borrow and for how long.

We’re experts at providing bad credit car finance, having helped thousands of customers across the UK onto a better road ahead. If mainstream lenders have rejected you, our friendly team can help find an agreement suitable for your circumstances.

For more information, check out our guide that explains Conditional Sale car finance, which is what we offer.

FAQs about getting car finance without proof of income

Yes, most lenders require you to provide documents to prove you have a consistent income. This is part of their process to ensure they only offer finance if it’s affordable for your circumstances. Some lenders use Open Banking, if you aren’t able to produce the documents they need.

Yes, you may be able to get car finance without needing payslips, if you can provide proof of income in another way. An expert from our team will be able to guide you through this process.

Having a car is a necessity for a lot of people. Even if you’re between jobs, a car might be the only way you can get around and enjoy day-to-day life.

Most lenders require you to have a certain monthly income to be eligible for car finance, so it may be best to wait until you have been in your new job for a few months before applying for finance.

Some lenders review your bank statements to understand your income and expenses. This helps them assess your affordability, as they must ensure any finance they offer is affordable for your circumstances.

Why do car finance providers ask for proof of income?

Car finance companies must ensure you can make your monthly repayments and that any agreements you enter will not cause financial difficulty. To do this, they perform a credit check to understand your eligibility.

You might have heard of companies claiming to offer car finance with no credit check, but this is a misleading claim and you should be cautious of anyone offering it.

This is explained by the Financial Conduct Authority (FCA) who regulate financial services in the UK. They explain that lenders “must undertake a reasonable assessment of the creditworthiness of a customer” before they can be offered finance.

By requesting proof of income and reviewing your credit history, we can make sure any finance we offer is tailored to your circumstances.

Discover more about how we operate.

What documents can be submitted as proof of income?

Every lender is different, and the documents they ask for vary. Most lenders ask for payslips, bank statements, or tax returns to understand your affordability.

When you apply for car finance with us, we’ll ask for 2 consecutive months of payslips or pension payments. We may also accept tax returns and benefits statements. This helps us make sure car finance is right for your circumstances.

As part of our checks, we’ll look at your credit file, income, and how much credit you currently have. For more information, check out our guide that explains the checks made by car finance companies.

What other documents do you need to be accepted for car finance?

As well as proof of income, you’ll need to provide us with:

  • Proof of identity: usually a full UK driving licence or passport.
  • Address history: if you are registered on the electoral roll, you won’t usually be asked for documents to confirm this. However, if you aren’t, the lender may ask for documents confirming at least 3 years of UK address history.

Can you get car finance with no proof of income?

Yes, it may be possible to get car finance without providing payslips. Some people naturally won’t have payslips that show their income, for example if they’re self-employed, retired, or in receipt of benefits. There may be other ways that a lender can prove your income, such as by using Open Banking.

If a lender can’t verify your income through Open Banking, they may ask you to provide documents proving your income.

If you don’t receive income from a job or pension, there are other sources of income we accept. These include:

  • Government benefits such as DLA and CA. Check out our guide to getting car finance on benefits. It lists all the benefits that we accept and explains the process of getting approved if you receive benefits.
  • Self-employed income. We are proud to accept applications from those who are freelancers, contractors, sole traders, and other people looking for car finance when self-employed.

This list is not exhaustive. Please read our page that outlines the full list of sources of income we accept for further information.

What are my options if I can’t provide proof of income?

You might be unemployed and looking for car finance with no proof of income. If you’ve recently changed jobs, acceptable proof of income if applying with Moneybarn is the most recent payslip from your new employer and 1 month payslip from your previous employer.

We also accept people who are self-employed looking for car finance or those who claim benefits looking for car finance.

Once you’ve got a quote, if you’re approved, a friendly expert from our team will be in touch to guide you through the process.

There are some things you can do to increase your chances of getting approved for car finance:

  • Making a joint application: a joint application is made by two people at the same address, like a partner or family member, and means that two incomes are considered. See our guide on joint car finance for more information.
  • Using a guarantor: some lenders let you use a guarantor for car finance, who will be responsible for making the payments if you cannot. Guarantors are typically friends or family members.
  • Using a specialist lender: some specialist lenders including bad credit car finance lenders can help those rejected elsewhere.
  • Improving your credit score: before applying, check your credit score and see if there’s anything you can do that might improve it. Doing things like registering for the electoral roll (if you haven’t already) can improve your credit score and your chances of being approved.

Get a new car on finance with Moneybarn

If you’re looking to buy your next car on finance, we’d love to help. Try our car finance calculator to see what your agreement could look like, based on how much you want to borrow and for how long.

We’re experts at providing bad credit car finance, having helped thousands of customers across the UK onto a better road ahead. If mainstream lenders have rejected you, our friendly team can help find an agreement suitable for your circumstances.

For more information, check out our guide that explains Conditional Sale car finance, which is what we offer.

FAQs about getting car finance without proof of income

Yes, most lenders require you to provide documents to prove you have a consistent income. This is part of their process to ensure they only offer finance if it’s affordable for your circumstances. Some lenders use Open Banking, if you aren’t able to produce the documents they need.

Yes, you may be able to get car finance without needing payslips, if you can provide proof of income in another way. An expert from our team will be able to guide you through this process.

Having a car is a necessity for a lot of people. Even if you’re between jobs, a car might be the only way you can get around and enjoy day-to-day life.

Most lenders require you to have a certain monthly income to be eligible for car finance, so it may be best to wait until you have been in your new job for a few months before applying for finance.

Some lenders review your bank statements to understand your income and expenses. This helps them assess your affordability, as they must ensure any finance they offer is affordable for your circumstances.

 
Daniel Timblick, Senior Credit Risk Analyst
Bringing you guides that simplify the world of credit and answer common vehicle finance questions.
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